Women more likely to set budgets than men

Women are more actively managing their near term finances than men, according to new research from Standard Life.

However, men are more likely to save in the long term, with nearly half of male respondents (46 per cent) planning to save something into a pension this tax year, compared to just over a third (37 per cent) of females.

Women were found to be more proficient in setting budgets than men and are increasingly reserved with their credit card spending. The study revealed they are doing much more to actively manage daily spending than men and are setting budgets, going online to find the best deals, capitalising on loyalty cards and even selling items they no longer need in order to remain on top of their finances.

Some 34 per cent of women are setting a budget, with just 28 per cent of men doing likewise. This is still relatively low for both sexes and it is important for people to outline and plan ahead their spending so finances are kept in order.

Failing to budget can leave households short at the end of the month, which can result in many individuals falling into money troubles. People are currently lumbered with personal debt and adding to it will only make the situation worse.

It is also important to think ahead and it is encouraging many individuals are doing so by planning finances to make the most of any tax breaks that might be available. For example, there are ISAs that can offer tax-free savings, however, only 16 per cent of women and 18 per cent of men are doing so.

Saving is certainly tough in the current climate but making sure you are maximising the amount you do manage to put away for a rainy day is imperative.

Standard Life's Julie Russell said: "Many of us are now doing a lot to manage our day to day money well, but there is certainly scope for women to start applying the momentum they have around short term savings to investing for their future."

By Amy White